Financial Crime World

Financial Regulation Agency Investigates Suspicious Transactions

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The Financial Regulation Agency (FRA) has launched an investigation into a recent transaction reported by one of its partner entities, as part of efforts to combat money laundering and terrorism financing.

Background

According to Article 11 of the Anti-Money Laundering and Combating Financing of Terrorism Law, if it is established that the given transaction did not have the purpose of money laundering or terrorism financing, the suspension decision shall be annulled and the entity in question notified immediately.

Exemption from Liability

  • Entities reporting transactions to the FRA and competent authorities are exempt from liability for breach of banking, professional, customer, business entity, or organization secrecy confidentiality.
  • If information submitted by these entities is not proven to be related to money laundering and terrorism financing, it shall not serve as grounds to impose civil, criminal, or other liability on the person or entity submitting such information.

Confidentiality

Entities and their employees are prohibited from disclosing any information related to reported transactions to anyone except those specified in Article 7 of this law. Similarly, heads, supervisors, analysts, and other officers of the FRA shall not disclose confidential information at any time, even after the end of their tenure.

Internal Monitoring

  • Entities subject to this law must have an Internal Monitoring and Risk Management Program aimed at combating money laundering and terrorism financing, adopted by their Board of Directors or equivalent management body.
  • The program must comply with the scope of business, specific features, and structure of the entity, and enable effective measures to reduce and prevent the risk of money laundering and terrorism financing.

Transportation of Cash Across Borders

Travelers carrying more than MNT15 million or an equivalent amount of foreign currency, bearer negotiable instruments, or e-money across the Mongolian border must declare their cash faithfully in customs declaration forms. The Mongolian Customs General Administration will consolidate these declarations and transmit them to the FRA every month.

Financial Information Unit

The Financial Information Unit is an autonomous and independent agency responsible for:

  • Receiving information related to money laundering, related crimes, and financing of terrorism from entities subject to this law.
  • Analyzing the received information.
  • Disseminating it to competent law enforcement authorities if necessary.